S&P Global Ratings lowered Xinyuan Real Estate Co. Ltd.'s long-term issuer credit rating to B- from B due to concerns over the company's tight liquidity.
The outlook is stable.
The agency said Sept. 12 that it lowered the Chinese real estate developer's long-term issue rating on outstanding senior notes to CCC+ from B-.
The downgrade reflects persistent tight liquidity conditions at the Chinese residential property developer as its launches cyclical sales. The developer's cash level is expected to remain low, while its short-term debt will be significant due to bullet maturities in late 2019 and in 2020, the rating agency noted.
Ratings believes it is unlikely the company will improve its capital structure amid the tough funding environment.
The stable outlook reflects the rating agency's view that Xinyuan will manage its maturing debts, achieve targeted contracted sales in the next 12 months and maintain stable leverage over the next 24 months.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found in the sources section.
